Connect with us

News

The U.S. Department of Justice joins eight states to sue Google for monopoly, demanding to spin off its advertising business – yqqlm

Published

on

BEIJING, Jan. 25 (Reuters) – The U.S. Department of Justice and eight states sued Google on Tuesday for illegally monopolizing the digital advertising market, demanding that the search giant’s advertising technology business be broken up.

Jonathan Kanter, the Justice Department’s antitrust chief, said at a news conference announcing the lawsuit on Tuesday that Google engaged in 15 years of anticompetitive conduct, including “acquisitions to achieve market dominance.” In 2007, Google bought online advertising giant DoubleClick for $3.1 billion (a deal the Justice Department is seeking to unwind), Invite Media in 2010 for $81 million and AdMeld in 2011 for $400 million.

“The lawsuit we’re filing today seeks to hold Google accountable for its longstanding monopoly in digital advertising technologies used by content creators to sell ads on the open Internet and by advertisers to buy them,” he said.

“No matter the industry, no matter the company, the Justice Department will stand firm in enforcing our antitrust laws,” Attorney General Merrick Garland said at a news conference.

Eight states, including New York, California and Virginia, signed the complaint and filed it in Virginia federal court.

In a blog post, Google said the lawsuit “attempts to pick winners and losers in the competitive ad tech space. The case “largely repeats an unfounded claim made by the Texas attorney general. lawsuit, most of which was recently dismissed by a federal court. The Justice Department is doubling down on a flawed argument that will slow innovation, drive up advertising costs and make it harder for thousands of small businesses and publishers to grow. “

The Justice Department lawsuit also seeks damages from Google for overcharging federal government agencies that buy online ads, such as the U.S. Army. The U.S. government has spent more than $100 million on online display ads since 2019, the agency said, but the complaint does not say how much the Justice Department is seeking in damages.

The lawsuit is the second antitrust lawsuit the Justice Department has brought against Google and the fifth major U.S. case challenging the company’s business practices.U.S. state attorneys general have also filed three separate lawsuits against Google, alleging that it android Dominating the online search, ad tech and app markets on mobile platforms violates antitrust laws.

As of Tuesday’s close, Google’s parent company Alphabet’s stock price fell 2.09%. The stock has fallen 23% in the 12 months through Monday, underperforming the Nasdaq 100 index.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending